I always leave it up to them to decide what they want to do and I just at least let them know what my opinions are and layout some options for them.

As I don't know your market, I can't say anything regarding cap rates there; based on some input from others here that are local to you, the layout of this property and the liabilities entailed (as a C/D property) would have me looking for returns north of 15%, which is substantially higher than what I'm seeing here based on quick calculations.

Besides size other layout issues can impact value, like a bedroom on a floor without a bathroom.

This is definitely a learning process- I just wish I had thought of that layout before sending out to all of my buyers!

and talking about how we would lay out the house the walls that would be removed etc. 

It sounds like your conversion costs are minimum and that the present layout of the home makes a division quite easy.

The old road layouts were abandoned usually due to the width being to narrow (11').

Can somebody lay out for me (or point me to another post or article) all the costs of a Hard Money loan?

@Robert Williams, you're right I probably need to have a conversation to lay out my expectations as to the need for same day responses.

Consider connecting with @Landon Hoon with A&N (local to Chicago) who can lay out all those details for you!